PSO files plan to retrofit, shut down coal-fired power units

Sep 26, 2012

Public Service Co. of Oklahoma (PSO), a subsidiary of American Electric Power (NYSE: AEP), filed its Environmental Compliance Plan with the Oklahoma Corporation Commission (OCC) to meet U.S. Environmental Protection Administration regulations. The plan includes an agreement in principle announced in April by PSO, the state of Oklahoma, EPA and the Sierra Club.

The compliance plan addresses the EPA’s Regional Haze Rule and Mercury Air and Toxics Standard. Four of PSO’s natural gas-fired power plants must comply with the RHR to reduce nitrogen oxide (NOX) emissions by installing special combustion technology. The Northeastern coal-fired power plant units 3 & 4 are subject to the RHR for NOx and sulfur dioxide (SO2) emissions. Under MATS, the units must reduce mercury and other emissions.

Under terms of the plan, PSO will close Unit 4 in early 2016 and will install emissions control equipment on Unit 3, modify some existing equipment, increase the use of ultra-low sulfur coal and lower the unit’s operating limits. Unit 3 will then be retired at the end of 2026.

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The OCC must approve costs associated with the plan before PSO can recover them from customers.